UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

/X/  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2003

/ /  TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT



                        Commission File Number: 00-19813

                               InfoNow Corporation
                               -------------------
        (Exact name of small business issuer as specified in its charter)


             Delaware                             04-3083360
             --------                             ----------
     (State of Incorporation)        (I.R.S. Employer Identification No.)

            1875 Lawrence Street, Suite 1100, Denver, Colorado, 80202
            ---------------------------------------------------------
                    (Address of principal executive offices)

                                  303-293-0212
                                  ------------
                           (Issuer's telephone number)

Check whether the issuer: (1) has filed all reports required to be filed by
Section 13 or 15 (d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
                                  Yes X   No
                                     ---    ---

As of April 25, 2003, there were 9,318,359 shares of the Issuer's common stock
outstanding.

Transitional Small Business Disclosure Format (Check one):    Yes     No X
                                                                 ---    ---
<PAGE>

                               INFONOW CORPORATION

                                      INDEX

                                                                        Page No.
                                                                        --------
                          PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

         Unaudited Balance Sheet - March 31, 2003..............................3

         Unaudited Statements of Operations - For the Three Months
           Ended March 31, 2003 and March 31, 2002.............................4

         Unaudited Statements of Cash Flows - For the Three Months
           Ended March 31, 2003 and March 31, 2002.............................5

         Notes to Unaudited Financial Statements...............................6


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION............12

ITEM 3.  CONTROLS AND PROCEDURES..............................................20


                           PART II. OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.....................................21

         SIGNATURES...........................................................22

         CERTIFICATIONS.......................................................23





                                       2
<PAGE>
<TABLE>
<CAPTION>

                                  PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements.

                                       INFONOW CORPORATION
                                          BALANCE SHEET
                            (In Thousands, Except Share Information)
                                           (Unaudited)
                                                                                        MARCH 31,
                                                                                          2003
                                                                                        --------
                                             ASSETS
                                             ------
CURRENT ASSETS:
<S>                                                                                     <C>
    Cash and cash equivalents                                                           $  2,620
    Accounts receivable:
          Billed, net of allowance of $25                                                  1,298
          Unbilled                                                                           140
    Deferred implementation costs                                                             20
    Prepaid expenses                                                                         452
                                                                                        --------
         Total current assets                                                              4,530
                                                                                        --------

PROPERTY AND EQUIPMENT, net                                                                  828

    Non-current deferred implementation costs                                                 42
    Other assets and deferred charges                                                         25
                                                                                        --------

TOTAL ASSETS                                                                            $  5,425
                                                                                        ========

                              LIABILITIES AND STOCKHOLDERS' EQUITY
                              ------------------------------------
CURRENT LIABILITIES:
    Capital leases - current portion                                                    $     98
    Accounts payable                                                                         413
    Payroll related liabilities                                                              343
    Other liabilities                                                                        156
    Short-term deferred revenues                                                             839
                                                                                        --------
         Total current liabilities                                                         1,849

    Capital leases, net of current portion                                                   109
    Long-term deferred revenues                                                               98
    Deferred rent                                                                            210

COMMITMENTS AND CONTINGENCIES (Note 2)

STOCKHOLDERS' EQUITY:
    Preferred stock, $.001 par value; 1,712,335 shares authorized
       Series A Convertible, 213,483 shares authorized, none issued and outstanding         --
       Series B Convertible Participating Preferred Stock, 550,000 shares authorized,
         none issued and outstanding                                                        --
    Common stock, $.001 par value; 15,000,000 shares authorized; 9,318,359 issued
         and outstanding                                                                       9
    Additional paid-in capital                                                            39,148
    Accumulated deficit                                                                  (35,998)
                                                                                        --------
         Total stockholders' equity                                                        3,159
                                                                                        --------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                              $  5,425
                                                                                        ========

                        See notes to the unaudited financial statements.

                                               3
<PAGE>

                               INFONOW CORPORATION
                            STATEMENTS OF OPERATIONS
                  (In Thousands, Except Per Share Information)
                                   (Unaudited)



                                                       THREE MONTHS ENDED MARCH 31,
                                                            2003          2002
                                                          -------       -------
REVENUES:
     Service and other fees                               $ 2,369       $ 2,219
     Implementation fees                                    1,191           881
     Software license fees                                     75            24
                                                          -------       -------
                Total revenues                              3,635         3,124
                                                          -------       -------

COST OF REVENUES                                            1,585         1,589
                                                          -------       -------

GROSS MARGIN                                                2,050         1,535

OPERATING EXPENSES:
    Selling and marketing                                     640           875
    Product development                                       359           353
    General and administrative                                768           677
                                                          -------       -------
         Total operating expenses                           1,767         1,905
                                                          -------       -------

INCOME (LOSS) FROM OPERATIONS                                 283          (370)

OTHER INCOME (EXPENSE):
    Interest income                                             6             8
    Interest expense                                           (5)           (9)
                                                          -------       -------
         Total other income (expense)                           1            (1)
                                                          -------       -------

NET INCOME (LOSS)                                         $   284       $  (371)
                                                          =======       =======

NET INCOME (LOSS) PER COMMON SHARE:
    Basic                                                 $   .03       $  (.04)
    Fully diluted                                         $   .03       $  (.04)
                                                          =======       =======

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
    Basic                                                   9,318         8,337
    Fully diluted                                           9,721         8,337
                                                          =======       =======


                See notes to the unaudited financial statements.

                                       4
<PAGE>

                                   INFONOW CORPORATION
                                STATEMENTS OF CASH FLOWS
                                     (in Thousands)
                                       (Unaudited)

                                                                  THREE MONTHS ENDED MARCH 31,
                                                                        2003       2002
                                                                      -------    -------
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income (loss)                                                 $   284    $  (371)
    Adjustments to reconcile net income (loss) to net cash provided
         by operating activities:
         Depreciation and amortization                                    186        272
         Allowance for bad debt                                            11        (24)
         Changes in operating assets and liabilities:
             Restricted cash                                             --           17
             Accounts receivable                                          341        142
             Other current assets                                         124        215
             Other assets and deferred charges                             33         20
             Accounts payable                                             105         54
             Payroll related and other liabilities                         49       (154)
             Deferred revenue                                            (989)       (15)
                                                                      -------    -------
         Net cash provided by operating activities                        144        156

CASH FLOWS FROM INVESTING ACTIVITIES:

    Purchase of property and equipment                                    (14)       (11)

CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from exercise of stock options                              --          151
    Principal payments on debt obligations                               --           (4)
                                                                      -------    -------
         Net cash provided by financing activities                       --          147

NET INCREASE IN CASH AND CASH EQUIVALENTS                                 130        292

CASH AND CASH EQUIVALENTS, beginning of period                          2,490      2,259
                                                                      -------    -------

CASH AND CASH EQUIVALENTS, end of period                              $ 2,620    $ 2,551
                                                                      =======    =======

SUPPLEMENTAL CASH FLOW INFORMATION:
    Cash paid for interest                                            $  --      $     1
                                                                      =======    =======

NON CASH INVESTING AND FINANCING ACTIVITIES:
    Non-cash purchases of property and equipment                      $    32    $    38
                                                                      =======    =======


                    See notes to the unaudited financial statements.

                                           5
</TABLE>
<PAGE>

                               INFONOW CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


1.   ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
     ------------------------------------------------------------

     Organization and Business Activity - Unless otherwise indicated, all
     references in this form 10-QSB to "InfoNow," "the Company," "we," or "one"
     refer to InfoNow Corporation. The Company was incorporated under the laws
     of the State of Delaware on October 29, 1990. The Company provides
     Enterprise Channel Management software and services to Global 2000
     companies that sell locally through dealers, distributors, resellers or
     branches, also known as channel partners. The Company's software and
     services enable large, multi-national companies to utilize the power of the
     Internet to sell to and service end customers in collaboration with their
     channel partners.

     The accompanying interim condensed financial statements are unaudited but,
     in the opinion of management, reflect all adjustments (consisting of those
     of a normal recurring nature) necessary for a fair presentation of the
     results for such periods. The results of operations for any interim period
     are not necessarily indicative of results for the full year. These
     condensed financial statements should be read in conjunction with the
     financial statements and notes thereto contained in the Company's previous
     filings with the U.S. Securities and Exchange Commission.

     Use of Estimates - The preparation of financial statements in conformity
     with accounting principles generally accepted in the United States of
     America requires management to make estimates and assumptions that affect
     the reported amounts of assets and liabilities and disclosure of contingent
     assets and liabilities at the date of the financial statements and the
     reported amounts of revenues and expenses during the reporting period.
     Actual results could differ from those estimates and the differences could
     be material. Significant estimates include the estimate of a customer life,
     over which deferred revenue and implementation expenses are recognized, the
     percentage of completion on a customer contract, and the allowance for
     doubtful accounts.

     Cash and Cash Equivalents - The Company considers all highly liquid
     investments with original maturity dates of three months or less to be cash
     equivalents. The Company's excess cash is maintained in a money market
     fund.

     Property and Equipment - Property and equipment are stated at cost.
     Replacements, renewals and improvements are capitalized and costs for
     repairs and maintenance are expensed as incurred. Depreciation is computed
     using the straight-line method over estimated useful lives of three to five
     years.

     Revenue Recognition - The Company offers its software and services to
     clients in two forms. The first (and historical) method utilizes an
     application service provider ("ASP") model. Under this business model the
     Company sells the right to use its software for the term of a specific
     agreement, and it implements and hosts that solution to meet specific
     client requirements. The revenue related to the right to use the Company's
     software is recognized through monthly service fees as services are
     performed. The implementation fee is deferred and recognized ratably over
     the longer of the expected customer life or contract term. During the three
     months ended March 31, 2003, implementation fees of $172,000 were deferred,
     of which $138,000 was recognized during the three months ended March 31,
     2003. During the three months ended March 31, 2002, implementation fees of
     $229,000 were deferred, of which $3,000 was recognized during the three
     months ended March 31, 2002.

                                       6
<PAGE>

     The second method of delivering our software and services is via a
     license-hosted model. The Company began offering this model in 2001. Under
     this model, the Company sells clients a perpetual license for its software.
     The customer can install the software on their own in-house systems, or, as
     is most often the case, InfoNow will host the software and perform related
     services for them under a services agreement. The Company recognized
     $587,000 in previously deferred revenue during the quarter as a result of
     the Company's largest client converting its Locator and Lead Management
     solutions from an ASP arrangement to a license-hosted arrangement. Under
     this model, the Company recognizes both license and implementation revenues
     under Statement of Position 97-2 ("SOP 97-2") on a percentage-of-completion
     basis over the implementation period, and it recognizes monthly service
     fees as earned. Losses are recognized immediately if projected direct costs
     exceed anticipated revenues.

     Income Taxes - The Company accounts for its income tax assets and
     liabilities in accordance with SFAS No. 109, Accounting for Income Taxes
     ("SFAS No. 109"). SFAS No. 109 requires recognition of deferred tax assets
     and liabilities for the expected future income tax consequences of
     transactions. Under this method, deferred tax assets and liabilities are
     determined based on the difference between the financial statement and tax
     basis of assets and liabilities using enacted tax rates in effect for the
     year in which the differences are expected to reverse. Net deferred tax
     assets are then reduced by a valuation allowance for amounts that do not
     satisfy the realization criteria of SFAS No. 109. As a result of the
     valuation allowance, the Company had no net deferred tax assets at March
     31, 2003.

     Stock Compensation Expense - The Company records its stock compensation
     expense in accordance with SFAS No. 123, Accounting for Stock-Based
     Compensation ("SFAS No. 123"). SFAS No. 123 specifies a fair value based
     method to measure compensation cost of issued stock options and similar
     instruments issued using a Black-Scholes model or other comparable method.
     However, the Company has elected an option under SFAS No. 123 that allows a
     company to continue to recognize compensation cost for employees and
     directors in accordance with the guidance in Accounting Principles Board
     No. 25 and disclose the pro forma results of operations as if SFAS No. 123
     had been applied to the financial statements. Transactions in which the
     Company issues stock options or other equity instruments to acquire goods
     or services from non-employees are accounted for in accordance with SFAS
     No. 123. The Company accounts for stock compensation for employees via the
     intrinsic value method and for non-employees via the fair value method. The
     intrinsic value method results in no compensation expense for new stock
     option grants because the market value and strike price of the stock option
     grant are the same on the grant date. Had compensation cost for the
     Company's plans been determined consistent with SFAS No. 123, the Company's
     net loss and loss per share would have been increased to the pro forma
     amounts indicated below:

                                       7
<PAGE>

                                                          March 31,
                                                      2003        2002
                                                     -------    -------
                                                    (In thousands, except
                                                      per share amounts)
        Net Income (Loss)
           As reported                               $   284    $  (371)
           Add: Stock-based employee compensation
             expense included in reported net
             income, net of tax effect                  --         --
           Deduct: Total stock-based employee
             compensation expense determined under
             fair value based method for all
             awards, net of tax effect                  (440)      (679)
                                                     -------    -------
           Pro forma                                 $  (156)   $(1,050)
                                                     =======    =======

        Earnings per share:
             Basic and diluted-as reported           $   .03    $  (.04)
             Basic and diluted-pro forma             $  (.02)   $  (.13)


     During the three months ended March 31, 2002, the Company received $151,000
     of proceeds from the exercise of 100,100 options by former employees
     pursuant to the terms of the original options. There were no stock option
     exercises during the three months ended March 31, 2003.

     Net Income (Loss) Per Common Share - The loss per share is presented in
     accordance with the provisions of SFAS No. 128, Earnings Per Share. Basic
     earnings per share ("EPS") is calculated by dividing the income or loss
     available to common stockholders by the weighted average number of common
     shares outstanding for the period. Diluted EPS reflects the potential
     dilution that could occur if securities or other contracts to issue common
     stock were exercised or converted into common stock. Stock options,
     warrants outstanding and their equivalents are included in diluted earnings
     per share computations through the "treasury stock method" unless they are
     antidilutive. Convertible securities are included in diluted earnings per
     share computations through the "if converted" method unless they are
     antidilutive. Basic and diluted EPS were the same for the first quarter of
     2002 because the Company had losses from operations and therefore, the
     effect of all potential common stocks was antidilutive. However, because
     the Company had net income for the first quarter of 2003, an additional
     403,000 potentially dilutive in-the-money shares were included for purposes
     of the fully diluted EPS calculation.

     For the three months ended March 31, 2002, approximately 1,015,000
     equivalent dilutive in-the-money securities (primarily common stock
     options) have been excluded from the weighted-average number of common
     shares outstanding for the diluted net loss per share computations, as they
     are antidilutive.

     Reclassifications - The Company's Statement of Operations contains
     categories for Service and Other Fees, Implementation Fees and Software
     License Fees. In the Company's quarterly report filed on Form 10-QSB for
     the three months ended March 31, 2002, Service and Other Fees and

                                       8
<PAGE>

     Implementation Fees were classified in a single category called
     Implementation and Service Fees. As a result, Service and Other Fees and
     Implementation fees in the prior year financial statements presented in
     this Form 10-QSB for the three months ended March 31, 2003 have been
     reclassified to conform to the current year classifications.

     Concentrations of Credit Risk - Financial instruments which potentially
     subject the Company to concentrations of credit risk are cash equivalents
     and accounts receivable. The Company attempts to limit its credit risk
     associated with cash equivalents by placing the Company's financial
     instruments with major institutions. The Company's customers are primarily
     large multi-national entities located throughout the U.S. The Company
     grants credit, generally without collateral, to these customers under
     specific contractual terms. The Company has not experienced any material
     losses related to its accounts receivable to date.

     During the three months ended March 31, 2003, the Company earned
     $1,557,000, or 43%, of its revenue from one global organization. Prior to
     the third quarter of 2002 this entity had three business units that were
     customers of the Company. However, due to a merger of this entity with an
     existing customer, this organization now has five business units that are
     counted as five customers of the Company. No other organization accounted
     for more than 10% of the Company's revenue during the three months ended
     March 31, 2003. As of March 31, 2003, that same organization accounted for
     approximately 47%, or $611,000, of the Company's net accounts receivable
     balance. The loss of this client, reduction in revenues from this client,
     or its inability or failure to pay would have a material adverse impact on
     the Company's financial condition and results of operations. Another client
     accounted for 30%, or $392,000, of the Company's net accounts receivable
     balance at March 31, 2003. No other customers accounted for more than 10%
     of the Company's accounts receivable balance at March 31, 2003.

     During the three months ended March 31, 2002, the Company earned 44% of its
     revenue from one customer, or approximately $1,381,000, and no other
     customer accounted for more than 10% of the Company's revenue during that
     time period.

     Segment Information - The Company operates in a single reportable segment
     and all revenues from customers are primarily from the sale of the
     Company's Enterprise Channel Management software and services.

     Recent Accounting Pronouncements - In June 2001, the FASB issued SFAS No.
     143, Accounting for Asset Retirement Obligations ("SFAS No. 143"). Under
     SFAS No. 143, the fair value of a liability for an asset retirement
     obligation covered under the scope of SFAS No. 143 would be recognized in
     the period in which the liability is incurred, with an offsetting increase
     in the carrying amount of the related long-lived asset. Over time, the
     liability would be accreted to its present value, and the capitalized cost
     would be depreciated over the useful life of the related asset. Upon
     settlement of the liability, an entity would either settle the obligation
     for its recorded amount or incur a gain or loss upon settlement. The
     adoption of SFAS No. 143 on January 1, 2003 had no impact on the Company's
     financial statements.

     In May 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated
     with Exit or Disposal Activities ("SFAS No. 146"). SFAS No. 146 addresses
     financial accounting and reporting for costs associated with exit or
     disposal activities and nullifies Emerging Issues Task Force Issue No.
     94-3, Liability Recognition for Certain Employee Termination Benefits and
     Other Costs to Exit an Activity (including certain Costs Incurred in a

                                       9
<PAGE>

     Restructuring) ("EIFT No. 94-3"). SFAS No. 146 requires that a liability
     for an exit cost or disposal activity be recognized when the liability is
     incurred, whereas, under EITF No. 94-3, a liability was recognized at the
     date of an entity's commitment to an exit plan. SFAS No. 146 also
     establishes that fair value is the objective for initial measurement of the
     liability. The provisions of SFAS No. 146 are effective for exit or
     disposal activities that are initiated after December 31, 2002, with early
     application encouraged. The adoption of SFAS No. 146 had no impact on the
     Company's financial position or results of operations.

     In November 2002, the Emerging Issues Task Force reached a consensus on
     Issue No. 00-21, Revenue Arrangements with Multiple Deliverables. The
     consensus requires an approach to determine whether the Company should
     divide an arrangement with multiple deliverables into separate units of
     accounting. The consensus is effective for revenue arrangements entered
     into in fiscal periods beginning after June 15, 2003, with earlier
     application permitted. The transition provisions of the consensus allow the
     Company to apply the consensus prospectively or as a cumulative effect of a
     change in accounting principle. The Company does not believe the consensus
     will have a material impact on its financial position or results of
     operations.

     In December 2002, the Financial Accounting Standards Board issued SFAS No.
     148, Accounting for Stock-Based Compensation-Transition and Disclosure, an
     amendment of SFAS No. 123. The statement provides alternative methods of
     transition for a voluntary change to the fair value method of accounting
     for stock-based employee compensation. In addition, the statement requires
     companies to disclose in both annual and interim financial statements the
     method of accounting for stock-based compensation and the effect of the
     method used on reported results. The statement is effective for annual
     periods ending after December 15, 2002 and interim periods beginning after
     December 15, 2002. The statement is not expected to have a material impact
     on the Company's financial statements. The Company has adopted the
     disclosure provisions of SFAS No. 148, however, it has not adopted the fair
     value method, and expects to continue to recognize compensation cost in
     accordance with the guidance in APB No. 25 unless future accounting rules
     dictate a change in method. If the Company were to adopt the fair value
     method, management believes there would be a material impact on the
     Company's results of operations.

     In January 2003, the FASB issued FASB Interpretation No. 46, Consolidation
     of Variable Interest Entities, an Interpretation of ARB No. 51("FIN 46").
     FIN 46 requires certain variable interest entities to be consolidated by
     the primary beneficiary of the entity if the equity investors in the entity
     do not have the characteristics of a controlling financial interest or do
     not have sufficient equity at risk for the entity to finance its activities
     without additional subordinated financial support from other parties. FIN
     46 is effective immediately for all new variable interest entities created
     or acquired after January 31, 2003. For variable interest entities created
     or acquired prior to February 1, 2003, the provisions of FIN 46 must be
     applied for the first interim or annual period beginning after June 15,
     2003. The Company does not believe that the adoption of this standard will
     have a material impact on its financial position or results of operations.


2.   COMMITMENTS AND CONTINGENCIES
     -----------------------------

     The Company leases approximately 27,000 square feet of office space at a
     rate of $16.50 per square foot for the period between October 1, 2002 and
     June 30, 2003. The rate increases to $17.00 per square foot from July 2003

                                       10
<PAGE>

     through September 2005 and $18.00 per square foot from October 2005 through
     September 2007, when the lease expires. The new lease contains a
     refurbishment allowance of $326,000, of which the Company utilized
     approximately $35,000 to improve the premises and $242,000 to offset a
     portion of its rent obligations from September 2002 through March 2003. The
     Company expects to use the remaining $49,000 to offset future rent
     obligations in April and May 2003. Rent expense, net of the refurbishment
     allowance, is recognized on a straight-line basis over the term of the
     lease.

     From time to time the Company may be involved in litigation that arises in
     the normal course of business operations. As of the date of this report,
     the Company is not a party to any litigation that it believes could
     reasonably be expected to have a material adverse effect on its business or
     results of operations.

     The Company received correspondence in 2001 from Murex Licensing
     Corporation asserting that certain technologies employed by the Company
     infringe on patents owned by Murex. During 2002, the Company received
     further correspondence from Murex stating Murex's belief that the Company
     is required to enter into a license agreement with Murex for the use of
     Murex's technology. However, to date, Murex has not brought a formal claim
     or litigation against the Company. While the Company is continuing to
     evaluate Murex's position, at this point it believes that the patent
     infringement and license agreement obligation claims asserted in the
     correspondence from Murex are without merit, and the Company intends to
     defend against them vigorously should Murex bring a formal claim or
     litigation against the Company. The Company has executed a nondisclosure
     agreement and has exchanged information with Murex, which may facilitate
     resolution of this matter. Notwithstanding the existence of meritorious
     defenses, any litigation over the scope and application of patents or
     similar intellectual property claims could involve significant costs of
     defense, risks and uncertainties.

















                                       11
<PAGE>

Item 2. Management's Discussion and Analysis or Plan of Operation.

The following discussion and analysis of the financial condition and results of
operations for InfoNow should be read in conjunction with our unaudited
financial statements and related notes appearing elsewhere in this report. This
discussion contains statements that are not historical fact. These
forward-looking statements are based on our current expectations, assumptions,
estimates and projections about our industry and business and include statements
about markets for our software and services, planned development of products and
anticipated expense and revenue levels. These forward-looking statements contain
words such as "anticipate", "believe", "plan", "expect" or similar language.
These forward-looking statements are subject to business and economic risks. Our
actual results could differ materially from those anticipated in such
forward-looking statements as a result of many factors, including those set
forth in this discussion and in other documents we have filed with the
Securities and Exchange Commission.

General Information and Overview

We provide Enterprise Channel Management solutions in the form of software and
services to Global 2000 companies that sell through dealers, distributors,
agents, branches or resellers (collectively referred to as channel partners).
Our software and services help companies use the power of the Internet to sell
to and service end customers by: i) effectively managing channel partners
worldwide; ii) providing partners and end customers with information about their
products and services; iii) referring end customers to the proper channel
partners; iv) capturing and managing leads through the sales cycle; v) promoting
and selling a company's branded products and services online; and vi) providing
meaningful insights into end customers and the channel partners serving them.
This in turn enables companies to increase revenues, lower operating costs and
deliver a significant return on investment.

As of March 31, 2003, we had 44 managed services clients, compared to the 50 we
reported as of March 31, 2002. We have and may continue to experience decreases
in our client count for various reasons, including client consolidation. Despite
the reduction in the number of clients, our contracted managed service fees,
which includes fees that are currently in a month-to-month contract status,
increased from $699,000 per month as of March 31, 2002, to $823,000 per month as
of March 31, 2003. Most of our clients are Global 2000 companies with extensive
channel partner networks. Our clients include Apple, Avaya, Bank of America,
Hewlett Packard, Lexmark, Maytag, The Hartford, Visa, Vision Service Plan (VSP)
and Wachovia Corporation.

Critical Accounting Policies

We believe the following accounting policies, which are important to our
financial position and results of operations, require significant judgments and
estimates on the part of management. We believe that the following represents
our critical accounting policies and estimates used in the preparation of our
financial statements, although not all-inclusive.

Revenue Recognition
-------------------

We offer our solutions to clients in two forms. The first (and historical)
method utilizes an application service provider ("ASP") model. Under this
business model we sell the right to use our software for the term of a specific
agreement, and we implement and host that solution to meet specific client
requirements. The implementation fee and related direct costs are deferred and
recognized ratably over the longer of the expected customer life or contract
term. Since most of our contracts range from one to three years in duration, the
customer life is typically the longer deferral period and is estimated to be
three years. This estimate is based on a number of factors including customer

                                       12
<PAGE>

turnover, the rate of change for the technology underlying our solutions and the
expectation that our customers will continue to convert from the ASP model to
the license-hosted model, under which software, implementation fees and direct
costs are not deferred and are recognized on a percentage of completion basis.

The second method of delivering our software and services is via a
license-hosted model. We began offering this model in 2001 and we expect it to
be our predominant methodology going forward. Under this model, we sell our
clients a perpetual license for our software. They can install our software on
their own in-house systems, or, as is most often the case, we will host the
software and perform related services under a managed services agreement. Under
this model, we recognize both license and implementation revenues under
Statement of Position 97-2 ("SOP 97-2") on a percentage-of-completion basis. As
changes occur in regards to our estimate of completion percentage, revenue
recognition is adjusted accordingly.

We began offering the license-hosted model in order to add flexibility in
offering our software and services and expand the addressable market for our
technology by meeting the needs of companies who wish to purchase our software.
Customers and prospects sometimes prefer a license-hosted arrangement as it
enables them to fund these projects using capital budgets, potentially reduces
the total cost of ownership, and offers a method for ensuring their long-term
right to use the software.

Our services are generally sold with annual or multi-year contracts. The initial
term of these agreements is typically one to three years and they are generally
renewable upon mutual agreement between InfoNow and the client.

A typical contract fee could include the following six separate
revenue-producing components:

Software license/implementation fees:

     -    The software license fee applies to all configured application
          software and related functionality used in the client's application.
     -    The implementation fee applies to the configuration of a tailored,
          client-specific software interface to the system and the design and
          configuration of client business rules and databases.

Monthly service fees and software maintenance fees:

     -    The managed service fee applies to hosting and provision of the
          service, any reconfiguration or maintenance on the software necessary
          during the contract term, as well as performance of routine
          maintenance to client databases and core systems.
     -    The variable monthly fee includes charges for system usage in excess
          of contracted thresholds.
     -    A software maintenance fee (for customers utilizing a license-hosted
          model) includes updates to the client's software.

Other fees:

     -    Variable fees included under this heading are pass-through charges for
          voice recordings, faxes, geocoding, and telecommunications charges,
          which are typically billed with an additional administrative fee in
          addition to the direct charge we incur to provide these services.

                                       13
<PAGE>

Revenue from software maintenance fees is recognized on a straight-line basis
over the term of the maintenance agreement. Recurring managed service fees and
variable monthly fees are recognized as services are performed. Software license
fees are generally recognized on a percentage-of-completion basis, and
implementation fees are recognized either on a percentage-of-completion basis or
over the estimated customer life, as discussed above.

During 2002, we began to match commission expense for our sales representatives
and account managers with revenues over the term of the contract versus at the
time of contract execution. The historical method generally was to recognize
commission expense at the time of contract execution. This change is based on a
change in commission policy that allows for recovery of commission payments if
the client receives a refund.

Effective March 16, 2000, we adopted Staff Accounting Bulletin No. 101, Revenue
Recognition in Financial Statements ("SAB 101"), which sets forth SEC guidelines
for the recognition of revenue. Prior to our adoption of SAB 101, we recognized
revenue from all implementation fees under the percentage-of-completion method.
The guidelines under SAB 101 require that we recognize revenues from
non-licensed initial implementation fees over the longer of the expected
customer life or contract term. In accordance with SAB 101, we also have
deferred direct incremental costs related to these deferred revenues. We
recorded a charge of $1,188,000 in the first quarter of 2000 to record the net
cumulative effect of this change in accounting principle, which consisted of
$1,631,000 of deferred revenue net of $443,000 of deferred costs. As of March
31, 2003, there were no remaining deferred revenue and expense balances
associated with the cumulative effect of the accounting change. Current and
future implementation (modification) fees related to enhancements of existing
non-licensed (i.e., ASP) customer solutions continue to be recognized under the
SAB 101 method.

The following table summarizes the distribution of our employees as of March 31,
2003 and March 31, 2002:

                                          March 31, 2003         March 31, 2002
Staff related to the Cost of Revenues           71                     67
Selling and Marketing                           19                     18
Product Development                             16                     14
General and Administrative                      12                     12
   Total Employees                              118                   111

Included in the table above are 106 full-time employees and 12 temporary
employees at March 31, 2003, and 101 full-time employees and 10 temporary
employees at March 31, 2002.


Results of Operations

Comparison of the Three Months Ended March 31, 2003 with the Three Months Ended
March 31, 2002.

Revenues: Our revenues consist primarily of implementation fees, software
license fees and monthly service fees from new and existing customers. Total
revenues increased by $511,000 or 16%, to $3,635,000 for the three months ended
March 31, 2003, from $3,124,000 for the three months ended March 31, 2002.

                                       14
<PAGE>

Monthly Service Fees and Software Maintenance Fees - Monthly service fees and
software maintenance fees were $2,337,000 during the first quarter of 2003, an
increase of $159,000, or 7%, from $2,178,000 in the first quarter of 2002. This
increase is net of $104,000 in lost service fees due to customer terminations.
The increase in managed service fees was generated primarily by additional
services that were sold to our largest customer. Monthly service fees and
software maintenance fees comprised 64% of total revenue during the three months
ended March 31, 2003, compared to 70% during the three months ended March 31,
2002.

Implementation Fees - Revenues generated from implementation fees during the
three months ended March 31, 2003, increased by $310,000, or 35%, to $1,191,000
from $881,000 during the three months ended March 31, 2002. The increase in
implementation fees is primarily attributable to a $653,000 increase in the
recognition of previously deferred implementation fees from $122,000 during the
three months ended March 31, 2002 to $775,000 during the three months ended
March 31, 2003. This change is mainly due to the recognition of $587,000 of
implementation fees for our largest client that were deferred in previous years
under the ASP model. During the first quarter of 2003, this client converted the
term licenses related to its Locator and Lead Management solutions to perpetual
licenses, which required the recognition of previously deferred implementation
fees. The increase in implementation fee revenue associated with the recognition
of previously deferred revenue was partially offset by decreases in revenue
caused by a decline in the sales of our solutions.

Software License Fees - Software license fees were $75,000 in the first quarter
of 2003, an increase of $51,000 from the $24,000 of license fees during the
first quarter of 2002. This increase in license fees is attributable to a
significant sale of our Channel Insight solution in the fourth quarter of 2002
for which implementation was completed in the first quarter of 2003. Software
license fees represented approximately 2% of total revenue during the three
months ended March 31, 2003, compared to 1% of revenue during the three months
ended March 31, 2002. We anticipate that a higher percentage of contracts will
be executed under license-hosted arrangements as it becomes our predominant
business model over time. Therefore, we expect an increased portion of our
future revenues to be generated by the sales of our licensed software.

Other Fees - Other fees decreased by $9,000, or 22%, to $32,000 during the three
months ended March 31, 2003, from $41,000 during the three months ended March
31, 2002. The decrease in other revenues is attributable to a decrease in the
number of contracts with charges for voice recordings, faxes, geocoding and
telecommunications charges, as well as a reduction in interactive voice response
transaction volume and negotiated rate reductions in our telecommunications
charges.

To date, we have recognized total revenue of $5,851,000 on the $10 million
contract, consisting of $4,508,000 in managed service fees, $1,072,000 in
implementation fees and $271,000 in software license fees. The balance of the
contract consists of managed service fees that are expected to be recognized in
2003 and 2004 on a monthly basis as we perform services.

Cost of Revenues: Our cost of revenues includes technical personnel salaries and
related personnel costs, data royalties, depreciation for server equipment,
reimbursable expenses such as telecommunications and contract labor related to
specific projects, co-location facility fees and other direct costs related to
operating our data centers, as well as the recognition of previously deferred
implementation expenses. Cost of revenues decreased to 44% of revenues in the
first quarter of 2003 from 51% in first quarter of 2002. This is primarily
because our revenue increased as a result of the recognition of previously
deferred implementation fees in the first quarter of 2003, as discussed above,
which did not generate a proportionate increase in costs. Total cost of revenues
decreased $4,000 to $1,585,000 during the three months ended March 31, 2003 from
$1,589,000 during the three months ended March 31, 2002. This was due in part to
a $71,000 reduction in our data center costs primarily as a result of negotiated
rate reductions in our data royalties, as well as a decline in depreciation

                                       15
<PAGE>

expense related to our data center hardware and software. We also experienced a
$55,000 decline in reimbursable expenses mainly because of lower
telecommunications charges as a result of negotiated rate reductions and lower
system usage due to the decline in our customer base. The decreases in our cost
of sales associated with data center costs and reimbursable expenses were
partially offset by a $67,000 increase in personnel and personnel support costs
primarily due to the hiring of additional personnel to support the growth in
service level requirements related to our Channel Insight solution. A
significant portion of this increase is the result of adding resources to
support the $10 million contract and the related upgrades and enhancements to
that solution that were sold to our largest customer during 2002. In addition,
we experienced a $35,000 net increase in the recognition of implementation
expense on contracts that were deferred under ASP arrangements mainly as a
result of the recognition of implementation expense associated with the
conversion of our largest customer from the ASP model to the license-hosted
model. Bad debt expense also increased $20,000 primarily as a result of
collections in the first quarter of 2002 related to receivables that had been
reserved in 2001. We did not experience the same level of collections of
previously reserved accounts receivable in the first quarter of 2003.

Operating Expenses:
-------------------

Selling and Marketing Expenses - Selling and marketing expenses consist of
sales, pre-sales, marketing and business development personnel costs and related
expenses, travel and entertainment, sales commissions, and advertising and
promotion costs. These costs decreased to 18% of revenues during the three
months ended March 31, 2003 from 28% of revenues during the three months ended
March 31, 2002. The total amount of selling and marketing expenses decreased by
$235,000, or 27%, to $640,000 during the three months ended March 31, 2003 from
$875,000 during the three months ended March 31, 2002. The change is partially
attributable to a $129,000 decrease in commission expense as a result of the
decline in the sales of our solutions. In addition, public relations and
advertising and promotion consulting costs decreased $124,000 and travel and
entertainment expenses declined $25,000. The decreases in sales and marketing
expenses related to commissions, consulting costs and travel expenses were
partially offset by a $43,000 increase in personnel and personnel support costs
related to an effort to enhance the quality of our sales team.

Product Development Expenses - Product development expenses consist of time
spent on development of our Enterprise Channel Management software that is not
specifically associated with a client contract. Product Development expenses are
primarily made up of salaries and related costs and subcontracted costs. For the
three months ended March 31, 2003, product development expenses increased
$6,000, or 2%, to $359,000 from $353,000 for the three months ended March 31,
2002. This change was primarily due to an increase in personnel and personnel
support costs as a result of allocating more of our existing resources to
support product development efforts.

General and Administrative Expenses - General and administrative expenses relate
to the personnel costs of our executive management, finance, investor relations,
human resources and other corporate functions, general expenses such as legal
and accounting fees, insurance and costs related to our facilities. These costs
decreased to 21% of revenues for the three months ended March 31, 2003, from 22%
of revenues for the three months ended March 31, 2002. The total amount of
general and administrative costs over the same period increased $91,000, or 13%,
to $768,000 during the first quarter of 2003 from $677,000 during the first
quarter of 2002. The increase was partially attributable to a $52,000 increase
in personnel related costs, which was mainly caused by salary increases for
executive management, finance, investor relations and human resources personnel.

                                       16
<PAGE>

In addition, we experienced a $41,000 increase in professional fees, including a
45% increase in our audit fees. Insurance expenses also increased $11,000 as a
result of increases in insurance rates. The increases in general and
administrative expenses associated with personnel costs, professional fees and
insurance expenses were partially offset by a $13,000 reduction in our
facilities costs, which was mainly due to lower depreciation expense since many
of our older assets are now fully depreciated.

Income Taxes: InfoNow has paid no income taxes since its inception and has not
recorded a benefit for income taxes due to valuation allowances provided against
net deferred tax assets, which consist primarily of operating loss
carryforwards.

Other Income/Expense: We had net other income of $1,000 during the three months
ended March 31, 2003, compared to net other expense of $1,000 for the three
months ended March 31, 2002. The increase of $2,000 is primarily attributable to
lower interest expense due to a reduction in our capital lease obligations. The
reduction in interest expense was partially offset by lower interest income on
cash and cash equivalents resulting from lower interest rates during the first
quarter of 2003 relative to the first quarter of 2002.

Net Income/Loss: Net income for the three months ended March 31, 2003 was
$284,000 compared to net loss of $371,000 for the three months ended March 31,
2002, a $655,000 increase. This increase is primarily attributable to a
$511,000, or 16%, increase in total revenues and a $2,000 increase in
non-operating income, as well as a $142,000, or 4%, decrease in total expenses
for the three months ended March 31, 2003, compared to the three months ended
March 31, 2002, as discussed above in this Item 2.


Liquidity and Capital Resources

InfoNow has financed its operations primarily through the placements of private
equity securities and, to a lesser extent, through borrowing and equipment
leasing arrangements. We have received a total of approximately $13,800,000 from
private offerings and have received an additional $2,667,000 from the exercise
of stock options and warrants since we began offering our Enterprise Channel
Management solutions in 1996. In February 2002, we secured a bank credit
facility with both a $1,000,000 revolving line of credit to support our future
operating needs and a $1,000,000 equipment facility to support our future
investing needs. The bank credit facility requires that we meet various
covenants. We are not permitted to draw on the bank credit facility if we are
out of compliance with any of the covenants. As of the date of this report, we
are in compliance with all covenants and we have no outstanding debt under this
facility. In March 2003, we renewed the arrangement through February 14, 2004
under substantially the same terms. The interest rate on the revolving line of
credit is the prime rate plus 1 percent, and the interest rate on the equipment
facility is the U.S. Treasury note yield to maturity for a term equal to 36
months as quoted in the Wall Street Journal plus 587 basis points.

We had cash and cash equivalents of $2,620,000 at March 31, 2003, compared to
$2,490,000 at December 31, 2002. The increase of $130,000 is due to $144,000 of
cash generated by our operating activities, which was partially offset by
capital expenditures of $14,000. Our excess cash is maintained in a money market
fund and earned interest of $6,000 and $8,000 during the three months ended
March 31, 2003 and 2002, respectively.

Net cash generated by operating activities during the three months ended March
31, 2003 was $144,000, compared to net cash generated by operating activities of
$156,000 during the three months ended March 31, 2002. The decrease of $12,000
is primarily due to changes in working capital and non-cash charges, which were
offset by a $655,000 increase in our net income.

                                       17
<PAGE>

Cash used in investing activities increased to $14,000 for the three months
ended March 31, 2003, compared to cash used in investing activities of $11,000
for the three months ended March 31, 2002. The cash used in investing activities
during both periods was primarily related to the purchase of computer hardware
and software for both personnel and our data centers.

We had no cash flows from financing activities during the first quarter of 2003,
compared to net cash provided by financing activities of $147,000 during the
first quarter of 2002. Cash flows from financing activities during the three
months ended March 31, 2002 consisted of $151,000 in proceeds received from the
exercise of stock options, net of $4,000 of principal payments on debt
obligations. There were no principal payments on debt obligations during the
first quarter of 2003 because we prepaid those obligations in the fourth quarter
of 2002.

Variation in the timing of our cash receipts and disbursements can significantly
impact our overall cash flow for a given period and there can be no assurance
that our current cash balance will be sufficient to fund operations.

If we believe it is advisable, we may seek additional funding to continue our
operations. Our ability to successfully complete an offering to obtain
additional funding is dependent on a number of factors. There can be no
assurances that we can successfully complete an equity or debt placement, or
that a placement can be concluded on the terms and conditions that would be
acceptable to us.

The following table summarizes the Company's contractual payments and
obligations by period (amounts in thousands):
<TABLE>
<CAPTION>

Contractual Obligations                                  Payment Due by Period
                                                Less Than                                After
                                       Total     1 year     1-3 years    4 - 5 years    5 years
                                       -----     ------     ---------    -----------    -------
<S>                                  <C>        <C>           <C>         <C>           <C>
Capital Lease Obligations                 230        113          117             -           -
Operating Leases                        2,091        417          940           734           -
Total Contractual Cash Obligation    $  2,321   $    530      $ 1,057     $     734     $     -
</TABLE>

We lease approximately 27,000 square feet of office space at a rate of $16.50
per square foot for the period between October 1, 2002 and June 30, 2003. The
rate increases to $17.00 per square foot from July 2003 through September 2005
and $18.00 per square foot from October 2005 through September 2007, when the
lease expires. The new lease contains a refurbishment allowance of $326,000, of
which we utilized approximately $35,000 to improve the premises and $242,000 to
offset a portion of our rent obligations from September 2002 through March 2003.
We expect to use the remaining $49,000 to offset future rent obligations in
April and May 2003. In the Contractual Obligations table above, the Operating
Leases commitments are net of the utilization of the remaining refurbishment
allowance to offset rent payments.

Recent Accounting Pronouncements
--------------------------------

In June, 2001 the FASB issued SFAS No. 143, Accounting for Asset Retirement
Obligations ("SFAS No. 143"). The adoption of SFAS No. 143 on January 1, 2003
had no impact on our financial statements.

                                       18
<PAGE>

In May 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated with
Exit or Disposal Activities ("SFAS No. 146"). The adoption of SFAS No. 146 had
no impact on our financial position or results of operations.

In November 2002, the Emerging Issues Task Force reached a consensus on Issue
No. 00-21, Revenue Arrangements with Multiple Deliverables. We do not believe
the consensus will have a material impact on our financial position or results
of operations.

In December 2002, the Financial Accounting Standards Board issued SFAS No. 148,
Accounting for Stock-Based Compensation-Transition and Disclosure, an amendment
of SFAS No. 123. If we were to adopt the fair value method, we believe there
would be a material impact on our results of operations.

In January 2003, the FASB issued FASB Interpretation No. 46, Consolidation of
Variable Interest Entities, an Interpretation of ARB No. 51 ("FIN 46"). We do
not believe that the adoption of this standard will have a material impact on
our financial position or results of operations.

Related Business Risks and Assumptions
--------------------------------------

Our actual results may vary materially from the forward-looking statements made
above, which have been made pursuant to the Private Securities Litigation Reform
Act of 1995. We intend that such statements be subject to the safe harbor
provisions of the Securities Act of 1933 and the Securities Exchange Act of
1934. Our forward-looking statements include the plans and objectives of
management for future operations and relate to a variety of factors, including
management's assumptions about our ability to:

     o    Gain market acceptance of our services;
     o    Retain existing customers and attract new customers;
     o    Accurately forecast and meet demands for our services, including our
          ability to maintain technical performance of the system as new clients
          are added;
     o    Maintain our ability to serve new and existing customers;
     o    Improve our operational and financial systems in order to address
          planned growth in our operations;
     o    Maintain pricing and adequate profit margins on our products and
          services;
     o    Retain and attract qualified technical personnel;
     o    Develop future enhancements to our services and control development
          costs of those enhancements;
     o    Operate our business in accordance with our operating budget;
     o    Respond to competitive threats; and
     o    Raise additional capital, if needed.

Our assumptions are based on judgments with respect to, among other things,
future economic, competitive and market conditions, and future business
decisions, all of which are difficult or impossible to predict accurately and
many of which are beyond our ability to control.

We believe that the assumptions underlying our forward-looking statements are
reasonable. However, our assumptions may prove to be inaccurate and therefore
there can be no assurance that the results contemplated in forward-looking
statements will be realized. You should not regard any statements made in this
report on Form 10-QSB as a representation by InfoNow or any other person that we
will achieve our objectives.

                                       19
<PAGE>

We received correspondence in 2001 from Murex Licensing Corporation asserting
that certain technologies employed by us infringe on patents owned by Murex.
During the first half of 2002, we received further correspondence from Murex,
which stated their belief that InfoNow is required to enter into a license
agreement with them for the use of their technology. However, to date, Murex has
not brought a formal claim or litigation against us. While we are continuing to
evaluate Murex's position, at this point we believe that the patent infringement
and license agreement obligation claims asserted in the correspondence from
Murex are without merit, and we intend to defend against them vigorously should
Murex bring a formal claim or litigation against us. We have executed a
nondisclosure agreement and we have exchanged information with Murex that may
facilitate resolution of this matter. Notwithstanding the existence of
meritorious defenses, any litigation over the scope and application of patents
or similar intellectual property claims could involve significant costs of
defense, risks and uncertainties.

For a more comprehensive discussion of the risk factors associated with our
business, please refer to the section entitled "Related Business Risks and
Assumptions: beginning on page 27 of our Annual Report filed with the Securities
and Exchange Commission on Form 10-KSB for the fiscal year ended December 31,
2002.

Item 3. Controls and Procedures.

Within the 90 days prior to the date of this report, we carried out an
evaluation, under the supervision and with the participation of our management,
including our Chief Executive Officer and Chief Financial Officer, of the
effectiveness of the design and operation of the Company's disclosure controls
and procedures pursuant to Exchange Act Rule 13a-14. Based upon that evaluation,
our Chief Executive Officer and Chief Financial Officer concluded that the
Company's disclosure controls and procedures are effective in timely alerting
them to material information required to be included in the Company's periodic
Securities and Exchange Commission filings relating to the Company. There were
no significant changes in the Company's internal controls or in other factors
that could significantly affect these internal controls subsequent to the date
of our most recent evaluation.





                                       20
<PAGE>

                           PART II. OTHER INFORMATION


Item 6. Exhibits and Reports on Form 8-K

     (a)  Exhibits

          None.

     (b)  Reports on Form 8-K.

          None.




                                       21
<PAGE>


                                   SIGNATURES



In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.



                                             INFONOW CORPORATION



Date:  April 28, 2003                        By: /s/ Michael W. Johnson
                                             --------------------------

                                             Michael W. Johnson, Chief Executive
                                             Officer



Date                  Title                               Signature
----                  -----                               ---------



April 28, 2003        Chief Financial Officer and         /s/ Harold R. Herbst
                      Executive Vice President            ----------------------
                      (Principal Financial Officer)       Harold R. Herbst


April 28, 2003        Vice President, Controller and      /s/ James L. Medina
                      Treasurer                           ----------------------
                      (Principal Accounting Officer)      James L. Medina




                                       22
<PAGE>

CERTIFICATIONS

I, Michael W. Johnson, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of InfoNow Corporation;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):

a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date: April 28, 2003

/s/ Michael W. Johnson
----------------------
Michael W. Johnson
Chief Executive Officer

                                       23
<PAGE>

CERTIFICATIONS

I, Harold R. Herbst, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of InfoNow Corporation;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):

a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date: April 28, 2003

/s/ Harold R. Herbst
--------------------
Harold R. Herbst
Chief Financial Officer

                                       24